Telewest set to name digital partners

TELEWEST Communications, Britain's second largest cable group, said yesterday it expected to name its chosen partners to offer digital services in April.

"It is likely to be one company as far as end-to-end hardware is concerned but different companies in terms of operating systems and ... conditional access," Stephen Davidson, the chief executive, said.

His comments came as the group said its annual pre-tax losses had widened to pounds 309.9m from pounds 250.0m but added that 1997 was a turning point.

Telewest said it believed pre-tax losses had peaked and that it was embarking on a steady path towards profit. Mr Davidson said he agreed with some analyst forecasts that the company had seen the heaviest of its losses.

He added that analyst projections that the group would break-even around 2002 were "ones we would agree with".

"It has been a year of enormous achievement. We generally see 1997 as a turning point. Strategic steps we said we would put in place we have put in place ... and 1998 has got off to a cracking start," he said.

Telewest, which saw earnings before interest, depreciation, tax and amortisation rise to pounds 49.6m from pounds 0.5m, declined to divulge the penetration targets it would have to meet to hit market projections. And the company, which reported key operating statistics in January, also declined to shed light on how merger talks were going.

With no statement announcing that negotiations are off, Telewest remains officially in bid talks with the Nasdaq-listed cable group NTL. It has also been on the receiving end of interest from one of its main shareholders - US West Communications Group - which has said it is considering raising its 26.53 per cent stake.

- Reuter